Abstract

The chapter discusses the context of the lending bubble in Ireland that accelerated in 2003 and lasted until 2008. It then contrasts the response to how non-performing loans to businesses and households were dealt with. The response to the massive lending for land and property was relatively rapid with the establishment of a government agency to which the delinquent development loans were quickly transferred. This removed these non-performing loans from the balance sheet of the banks. On the other hand, the response for non-performing mortgages has been very slow by comparison.

Connor, Gregory, Thomas Flavin and Brian O’Kelly (2012), The US and Irish Credit Crises: Their Distinctive Differences and Common Features, Journal of International Money and Finance, Volume 31: 60–79Google Scholar